Required information [The following information applies to the questions displayed below.] Black Diamond Company produces snowboards. Each snowboard requires 1 pounds of carbon fiber. Management reports that 5,900 snowboards and 6,900 pounds of carbon fiber are in inventory at the beginning of the third quarter, and that 159,000 snowboards are budgeted to be sold during the third quarter. Management wants to end the third quarter with 4,400 snowboards and 4,900 pounds of carbon fiber in inventory. Carbon fiber costs $24 per pound. Each snowboard requires 0.6 hour of direct labor at $29 per hour. Variable overhead is budgeted at the rate of $17 per direct labor hour. The company budgets fixed overhead of $1,791,000 for the quarter. Required: 1. Prepare the production budget for the third quarter. Hint: Desired ending inventory units are given. BLACK DIAMOND COMPANY Production Budget (in units) Third Quarter 4,400 Add: Desired ending inventory units Budgeted sales units Total required units 159,000 163,400 5,900 157,500 Less: Beginning inventory units Units to produce 2. Prepare the direct materials budget for the third quarter. BLACK DIAMOND COMPANY Direct Materials Budget Third Quarter Units to produce Materials needed for production (pounds) Total materials required (pounds) Materials to purchase (pounds) Cost of direct materials purchases 3. Prepare the direct labor budget for the third quarter. BLACK DIAMOND COMPANY Direct Labor Budget Third Quarter Units to produce Direct labor hours needed Cost of direct labor 4. Prepare the factory overhead budget for the third quarter. BLACK DIAMOND COMPANY Factory Overhead Budget Third Quarter Direct labor hours needed